Grade 7 Pre-technical – Economic resources Quiz

1. Which of the following is an example of a natural economic resource used in production in Kenya?

The owner who manages a small factory
Money saved in a bank
Fertile land for growing tea
A sewing machine owned by a tailor
Explanation:

Natural resources are materials found in nature used for production. Fertile land is a natural resource used to grow tea in Kenya.

2. What is a capital resource in the production process?

A type of seed variety
A tractor used to plough a farm
Rainfall on a farm
A worker who plants crops
Explanation:

Capital resources are man-made tools or equipment used to produce goods or services. A tractor is an example of such equipment.

3. Which item is an example of human (labour) resources?

A skilled carpenter who makes furniture
Timber from a forest
Electricity used to run machines
Machinery in a factory
Explanation:

Human resources refer to people who provide skills and labour. A skilled carpenter is a person contributing labour to production.

4. Which of the following best defines entrepreneurship as an economic resource?

People who work on farms
Machines used in a factory
Someone who starts a business and takes risks
Land used to grow crops
Explanation:

Entrepreneurship is the ability to organise resources, start a business, and take risks to produce goods or services.

5. Which resource is non-renewable and can be used up if not managed carefully?

Coal and minerals like copper
Wood from well-managed tree farms
Rainwater harvested for irrigation
Sisal plants that regrow each season
Explanation:

Non-renewable resources such as coal and minerals cannot be replaced in a short time and can be exhausted.

6. Which of these is a renewable resource important to Kenyan industries?

Crude oil under the ground
Iron ore deposits
Stone used in construction
Timber from sustainably managed forests
Explanation:

Renewable resources can be replenished; sustainably managed forests can provide timber continuously.

7. Why is saving and investing important for production in a community?

It reduces the number of workers available
It wastes money that could be eaten
It provides funds to buy machines and start businesses
It allows people to buy more imported toys
Explanation:

Saving and investing mobilises money that can be used to purchase capital goods and finance new businesses, increasing production.

8. Which of the following is an example of raw materials for production of paper in Kenya?

Finished notebooks sold in shops
A photocopy machine
A shopkeeper who sells paper
Pulp made from wood or recycled paper
Explanation:

Raw materials are basic materials used in production. Pulp from wood or recycled paper is used to make paper products.

9. What does 'opportunity cost' mean when choosing what to produce on a small farm?

The total weight of harvested crops
The price at which crops will be sold
The benefit lost of not planting maize when planting vegetables instead
The money spent to buy seeds
Explanation:

Opportunity cost is the value of the next best alternative forgone when a choice is made.

10. Which of these actions helps conserve materials for future production?

Using single-use packaging where possible
Recycling old paper and plastic
Mining faster to increase supply
Cutting all trees without replanting
Explanation:

Recycling reduces demand for new raw materials and helps conserve resources for future production.

11. In Kenya, which crop is commonly used as a raw material for making tea and contributes to production resources?

Maize used for ugali
Tomatoes for local markets
Tea leaves grown in highlands
Coffee used for export
Explanation:

Tea leaves are a raw material produced on Kenyan farms and processed into tea for local use and export.

12. What is the role of infrastructure (roads, electricity) in production?

They are natural resources like rivers
They are finished goods sold to consumers
They support production by making transport and power available
They reduce the need for workers
Explanation:

Infrastructure such as roads and electricity enables production by allowing movement of goods and providing power for machines.

13. Which of the following is true about scarce resources?

They increase automatically when used
They are limited and require choices on how to use them
They are unlimited and free for everyone
They refer only to money
Explanation:

Scarcity means resources are limited, so societies must decide how best to allocate them.

14. Which material would be classified as an intermediate good used in manufacturing shoes?

A customer buying the shoes
Leather and rubber used to make shoes
Finished shoes sold in the market
A shop where shoes are sold
Explanation:

Intermediate goods are materials used in production to make finished goods; leather and rubber are inputs for shoe manufacturing.

15. Why is division of labour useful in production of a school desk in a workshop?

Each worker does all tasks, slowing production
It makes the product cost more for students
It increases the number of different raw materials needed
Workers specialise in tasks, increasing speed and skill
Explanation:

Division of labour lets workers focus on specific tasks, which raises efficiency and product quality.

16. Which of the following best illustrates value addition in Kenyan agriculture?

Turning milk into yogurt and selling packaged yogurt
Using cheaper seeds that reduce yield
Leaving mangoes to rot on the farm
Selling raw milk directly to consumers
Explanation:

Value addition means processing raw materials into higher value products; making and packaging yogurt raises the product's value.

17. Which energy resource is commonly used in Kenyan homes and small factories and is renewable?

Petrol from oil
Coal imported for large power plants
Natural gas from underground reserves
Solar energy from the sun
Explanation:

Solar energy is renewable and widely used in Kenya for lighting, heating water, and powering small machines.

18. Which of these is an example of an imported raw material used by Kenyan manufacturers?

Imported steel for making tools
Sisal produced by Kenyan farmers
Locally grown tea leaves
Timber from Kenyan forests
Explanation:

Manufacturers sometimes import raw materials like steel if they are not sufficiently available locally.

19. How does protecting the environment help maintain materials for production?

It allows natural resources to continue providing raw materials
It prevents any use of land for farming
It increases immediate profits by removing trees
It reduces the need for human workers
Explanation:

Protecting the environment ensures natural resources like soil, water and forests remain productive for future use.

20. Which action shows responsible use of scarce materials in a school science lab?

Breaking equipment for fun
Wasting paper towels every day
Using chemicals without measuring
Measuring and reusing materials when possible
Explanation:

Careful measurement and reusing materials reduces waste and conserves scarce resources.

21. Which of the following is an example of a service that supports production?

A pile of stones used in construction
A tree planted by a farmer
A bank giving a loan to a small factory
A bag of fertiliser
Explanation:

Services like banking provide finance that helps producers buy capital and grow production.

22. What is the main benefit of using locally available materials for production in Kenya?

It always produces higher profits than any imported material
It eliminates the need for skilled workers
It makes products worthless in foreign markets
It helps reduce transport costs and supports local jobs
Explanation:

Using local materials lowers transportation costs and creates employment locally, supporting the economy.

23. Which factor most directly affects the cost of materials used in production?

The height of the manager
Supply and demand for the material
The number of customers in the shop next door
The colour of the factory building
Explanation:

Prices of materials change because of supply and demand: scarce supply or high demand raises costs.

24. Why might a factory in Kenya choose to reuse scrap metal in production?

It increases the need to import more materials
Reused metal is lower quality and always wastes time
It removes the need for workers completely
Recycling scrap reduces material costs and saves resources
Explanation:

Reusing scrap metal cuts costs and conserves raw materials, making production cheaper and more sustainable.

25. Which choice best shows specialization between two farmers to increase production?

Both farmers grow the same small maize plot and share work
They both try to do every single task alone
One farmer grows vegetables while the other focuses on tea and they trade
Both farmers stop farming and look for jobs in town
Explanation:

Specialisation means each person focuses on what they do best; trading allows them to get other goods efficiently.